Thanks. I've been using the night builds, but that was a while ago so I have no idea what version I was using at that point. Since then, I've gotten a lot of missions with Ethereals. They do use psi attack, but not tons of them. I can't say for certain, but when I recently got the Psi labs online, none of my squad had a rating of higher than 50, and more than half were less than half that rating. So, it probably wouldn't have been because my soldiers had a psi rating that was too high, though I undoubtedly lose several who potentially had much higher ratings.
Anyways, in recent battles, I've definitely seen psi attacks. Haven't run into many Sectoids recently to see if they can manage anything significant.
'Course, in one particular battle, that raised another issue. I had my entire squad outside the skyranger attempting to shoot at something or other. On two separate occasions, a soldier was mind controlled and did absolutely nothing except wander a few spaces away. I seem to recall the original xcom being punishing when those guys would get controlled and kill everybody around them with either a grenade or auto shots. In each case, I simply walked over, stunned the controlled soldier and went on the with battle.
I know the AI is being worked on, and my last battle with the most recent night release yesterday saw 6 Sectopods in a downed terror ship completely destroy my squad. Maybe the RNG giveth and the RNG taketh away....